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HEALTHCARE for WORKERS with DisABILITIES (HWD)

Health and Recovery Services AdministrationFUNDED IN PART BY CMS MEDICAID INFRASTRUCTURE GRANT CFDA NO. 93768

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HWD

Employment

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Ticket to Work Work IncentivesImprovement Act (TWWIIA) of 1999or Public Law 106-170

To support the competitive employmentof people with disabilitieswho want to work

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Increases Healthcare Coverage

Medicaid Buy-In – implemented in WA in 2002 asHealthcare for Workers with Disabilities (HWD) toencourage work without the fear of losing Medicaid

Note: People receiving or “eligible for SSI” getMedicaid without enrolling in HWD and having to

pay a monthly premium.

Medicaid Buy-In Medicaid Buy-In In WA State - HWDIn WA State - HWDTitle 19 of the Social Security Act

Two New Eligibility Groups

• Basic Coverage Group• Medical Improvement (MI) Group

Must first be enrolled in the basic group.

Then, continue in the MI group.

HWDHWDHealthcare for Workers with DisabilitiesHealthcare for Workers with Disabilities

Who Qualifies?

• Washington State resident• Age 16 through 64• Net Income standard - 220% fed poverty level (FPL)• Meet federal disability requirements• Employed full or part time (including self-

employment)


Net Income limit - 220% FPL• Net income:

$1797 for single person$2420 for married couple

• Deductions: $20, $65, and 1/2 remainderOther amounts (by statute) Impairment-related work expenses (IRWE)


• Total* income:$3,676 for single person$4,950 for married couple

• Deductions:None

When the individual no longer receives unearned income, e.g., SSDI. Income standard is slightly lower when counting unearned income, since deductions for earned income do not apply to unearned income.

Total Income limit - 450% FPL


What income is counted and what standard is used?

• If you are single, we use the one-person standard

• If you have children, we deduct up to 1/2 the federal benefit rate (FBR) - $301.50 for each child in the home


• If you are married, we compare spouse’s income to 1/2 FBR - $301.50

• If your spouse’s income is more than that:We add both incomesUse the two-person standard

• If your spouse’s income is less than that:We count only your incomeUse the one-person standard


What about resources/ assets?

There is no asset test

Encourage earnings and savings

Promote self-sufficiency

Improve quality of life


What are the disability requirements

for HWD?

• Same as those for SSI and SSDI (physical and/or psychological impairment), but

• No substantial gainful activity (SGA) test

Definition of Employment Definition of Employment

For the Basic Coverage Group:

Must be employed full or part time,including self-employment:

• Get paid with earnings subject to federal income taxes – taxes taken out of wages*

• Self-employed: Receiving income for work activity that is subject to federal income taxes**

*Unless prohibited by law

**Documentation may include business records and/or

IRS Schedule SE form

Definition of EmploymentDefinition of Employment

For the Medical Improvement Group:

Must be employed full or part time, includingself-employment - like the Basic Coverage

Group, and

- Working at least 40 hours per month

- Earning at least minimum wage

What if I lose my job What if I lose my job after enrolling in the after enrolling in the

HWD program?HWD program? Can choose to continue enrollment through

the the 12-month certification period, if:

• Job loss due to a health crisis or involuntary dismissal• You intend to return to work after health crisis or

continue to look for new job

• You continue to pay your monthly premium

How much is my How much is my monthly premium for monthly premium for HWD?HWD?

HWD Premium equals whichever is less:• 7.5% of total income, or

A total of the following:

• 50% of unearned income above the medically needy income

level - $603

• 5% of all unearned income

• 2.5% of earned income after deducting $65


What income is counted when determining

the amount of my premium?

- We only count your income

- If both spouses apply, we calculate a premium for each person, using his or her own income

Premium Calculation -1Premium Calculation -1

Income Calculation Premium

Earned $665.00

Unearned $803.00

Premium calculation

(Unearned - $603) x ½ 200 x ½ $100.00

5.0% x Unearned 5% x 803 $40.15

2.5% x (Earned - $65) 2.5% x 600 $15.00

Premium amount $155.15

Premium Calculation -2Premium Calculation -2


Earned $665.00

Unearned $803.00

Premium calculation

Total income $1,468.00

7.5% Income .075 x 1,444 $110.10

Compare to formula X+Y+Z $155.15

Premium amount (lesser of two)

$110.10

Spenddown example Spenddown example for comparisonfor comparison

Income Calculation Spenddown

Unearned $803.00

Earned $665.00

Spenddown calculation

(Unearned - $603) - 20 803 – 603 -20 $180.00

(Earned – 65) – ½ 665 – 65 - 300 $300.00

Total $480.00

Spenddown x 3 $1,440.00

Premium CalculationPremium Calculation(Earned Income Only)(Earned Income Only)


Unearned None

Earned $1,444.00

Premium calculation

Earned income - $65 $1,379.00

2.5% of $1,379 .025 x 1,379 $34.47

Premium amount (rounded down)

$34.00


Medicare and HWD

• Medicare Buy-In pays for Medicare Part A (if not eligible for free Part A)

• Pays for Medicare Part B premiums – currently $88.50 per month

• Enrollee automatically qualifies as a dual eligible, which provides full Part D subsidy

• This can be a huge benefit for folks and can offset the HWD premium expense


Who else may benefit from HWD?

Person whose SSI terminated due to income or resources Person who is over resources for MN spenddown Person with spenddown bigger than HWD premium Person who needs services not covered by MN, e.g. Medicaid Personal

Care Person who is functionally eligible for DD waiver but has income over the

SIL or resources above the SSI standard Person on DDD waiver who resides in an ALF and pays a large portion

of their income towards participation

NOTE: HWD enrollees living in an ALF on the Waiver pay room and board plus the HWD premium. They DO NOT pay toward the service participation.


http://fsa.dshs.wa.gov/hwd/


How do I use the HWD Website?

WEBSITE: http://fsa.dshs.wa.gov/hwd/

Don’t try to log in. Hit Entry Form Tab,

input sample case, then back out of the system

without saving



How are Premiums Paid?

FSA sends bills during the first week of the month following the month covered

Payments are sent to FSA in OlympiaFSA notifies HWD Coordinator if premium falls 4

months behind


What if payment isn’t made?

If person falls 4 months behind, term letter is sent to give “last chance notice”

If closed for nonpayment, person cannot be eligible for four months, must pay debt in full and reapply


What is my responsibility?Assist individual with submitting an application

(or ER for program change) for HWD Send DSHS 14-084 to request a program

change when necessaryIndicate the individual’s living arrangementAttach verification of earnings and new source

of income (if appropriate)Indicate if MPC or waiver service.


HWD CONTACT INFORMATION – see handout

For more info online about HWD, visit:

http://fortress.wa.gov/dshs/maa/Eligibility/HWD.htm

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Documents

disabilitieswhat income

unearned income

spouses income

fplnet income

net income standard

federal income taxes

disabilitiesnet income

total income limit